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STRATA DESPICABLE ME
THE INDUSTRY, AND STRATA STRATA HISTORY & RELEVANCE TILL NOW IMPORTANCE OF SPLITTING A BUILDING THE LAW IS UN‐SCIENCE
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PERSATUAN PENGURUSAN KOMPLEKS MALAYSIA (PPK)
• Since 1984
• Represents 671 shopping malls in Malaysia of combined RM 130billion worth of real estate
• Of which 141 (21%) are strata malls, that is RM 26billion estate value.
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3 WHAT IS STRATA?
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Ampang Park 15 March 1973
WHERE ARE THESE RM26B 141 STRATA MALLS?
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4 Campbell Shopping Complex, KL opened in May 1973
https://says.com/my/lifestyle/old-malls-that-still-exist-in-malaysia-and-what-made- them-so-happening 9
Sungei Wang opened in 1977
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5 SOGO, KL opened in 1994 Lot 10, KL opened in 1989
Subang Parade, Subang Jaya opened in 1988 11
Cheras Leisure Mall opened in 1994
Amcorp Mall, PJ opened in 1998 12
6 Plaza Low Yat, KL opened in 1999
Berjaya Times Square 2003 IMBI Plaza
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Prangin Mall, Penang 2001
Summit USJ 1999 - 2016 Kompleks Bukit Jambul 1997
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7 SAME ACTS
ICON CITY PJ 15
• Accessories large amount of car parks to single main parcel • Limitation on terms of office bearers and duration contracts engaged by JMB / MC • Misrepresentation in sales impressions • Multiple rates • Predicament caused to existing strata mixed by Schedule One
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8 DALAM MAHKAMAH RAYUAN MALAYSIA (BIDANGKUASA RAYUAN) [RAYUAN SIVIL NO: W-02-1326-08/2014] ANTARA PERANTARA PROPERTIES SDN BHD ... PERAYU JMC-KELANA SQUARE ... RESPONDEN
Hence it is our view that to sustain the Respondent’s contention, the provisions contained in BCPA 2007 would contravene Article 13 of the Federal Constitution. So as not to invalidate the provisions in BCPA 2007, we hold that the aforesaid provisions do not apply to the 1995 sales and purchase agreements. Thus the proprietary rights in the car parks of the Appellant remain with it pursuant to the sales and purchase agreements signed with the purchasers
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• Parcelization of kindergarten
• Accessorised large quantity of car parks to one main parcel
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9 MALAYSIA LAND PROPERTIES SDN BHD V WALDORF & WINDSOR JMB [2014] 3 MLJ 467
• Common Facility being Parcelised
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MALAYAN LAW JOURNAL UNREPORTED/2018/VOLUME/PARK ACCESS SDN BHD & ORS V BADAN PENGURUSAN BERSAMA PRIMA AVENUE DAN DPCC FASA 1 (BLOK G,H,I) AND OTHER APPEALS - [2018] MLJU 647 - 18 MAY 2018 [2018] MLJU 647
• Parcelised basement carpark & surface carparks being contested as “common area”
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10 NEW TREND IN STRATA MALLS
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Strata will still be relevant. People are still buying Sophisticated hybrid mixed developments.
STAR AVENUE DAMEN, USJ
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12 PLAZA ARKADIA, DESA PARKCITY
1 MONT KIARA SUNWAY GIZA
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101 THINGS ENGINEERS MUST KNOW BEFORE STARTING TO DESIGN A STRATA ASSET
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13 HORIZONTALLY SPLIT CONCEPT
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CONDO HOTEL
SHOPPING MALL
CAR PARK
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14 HORIZONTALLY SPLIT CONCEPT
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15 CONDO OFFICE OFFICE OFFICEHOTEL
SHOPPINGSHOPPING MALL MALL
CAR PARK
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VERTICALLY SPLIT CONCEPT
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16 VERTICALLY SPLIT CONCEPT
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VERTICALLY SPLIT CONCEPT
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17 OFFICE
OFFICE
SHOPPING MALL
CAR PARK CAR PARK
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ENGINEERS NEED TO HAVE SOME COMMON SENSE ABOUT STRATA LAW
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18 UNSOLD UNITS WITH HIGH COMMITMENTS
PENT PENT HOUSE HOUSE
CONDO CONDO
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LARGE SIZED UN-TENANTED UNITS
RETAIL
CONDO OFFICE SOHO BLOCK A BLOCK B BLOCK C
RETAIL RETAIL CAR PARK RETAIL
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19 SOMETHING ABOUT THE LAW THAT ENGINEERS CAN NEVER UNDERSTAND AND CAN NEVER AGREE TO
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HOW WOULD YOU CALCULATE SERVICE CHARGE PAYABLE BY EVERY MEMBER OF A MIXED DEVELOPMENT? 2 2 RMMALL = FT MALL x RM/FT MALL 2 2 RMOFFI = FT OFFI x RM/FT OFFI 2 2 RMRESI = FT RESI x RM/FT RESI
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20 2 2 RMMALL = FT MALL x RM/FT UNIFORM 2 2 RMOFFI = FT OFFI x RM/FT UNIFORM 2 2 RMRESI = FT RESI x RM/FT UNIFORM
RMMALL = SUMALL x RM/SUMALL RMOFFI = SUOFFI x RM/SUOFFI RMRESI = SURESI x RM/SURESI
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2 2 RMMALL = FT MALL x RM/FT UNIFORM 2 2 RMOFFI = FT OFFI x RM/FT UNIFORM 2 2 RMRESI = FT RESI x RM/FT UNIFORM
RMMALL = SUMALL x RM/SUMALL RMOFFI = SUOFFI x RM/SUOFFI RMRESI = SURESI x RM/SURESI
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21 ALLOCATION OF DIFFERENT RATES IS AS SOPHISTICATED AN ISSUE AS ALLOCATING SHARE UNITS
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AREA Size m2 TYPE Residential, retail , office PREMIUM Corner Ground Floor FACILITY Airconditioning , Lift Gym, Pool
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22 AREA Size m2 TYPE Residential, retail , } RENT office PREMIUM Corner } PURCHASED PRICE Ground Floor FACILITY Airconditioning , Lift } COSTS & Gym, Pool EXPENSES
Share unit is then being allocated
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2 M MALL X
ASSET CLASS FACTOR = SUMALL
SU X RM/SU MALL AVERAGED OUT BUILDING MAINTENANCE COSTS
= RMMALL
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23 2 M MALL X
ASSET CLASS FACTOR = SUMALL
SU X RM/SU MALL AVERAGED OUT BUILDING MAINTENANCE COSTS
= RMMALL
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2 SU M MALL X=ASSET CLASS FACTOR MALL
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24 2 SU M OFFI X=ASSET CLASS FACTOR OFFI
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2 2 2 M MALL M OFFI M RESI X XX
= ==
SUMALL SUOFFI SURESI X X X RM/SU RM/SU RM/SU ===
RMMALL RMOFFI RMRESI
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25 2 2 2 M MALL M OFFI M RESI X XX
= ==
SUMALL SUOFFI SURESI X X X
RM/SU RM/SU RM/SUUNIFORM ===UNIFORM UNIFORM
RMMALL RMOFFI RMRESI
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2 2 2 M MALL M OFFI M RESI X XX
= ==
SUMALL SUOFFI SURESI X X X
RM/SU RM/SU RM/SURESI ===MALL OFFI
RMMALL RMOFFI RMRESI
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26 Source: Surveyor Chang, Penang 53
Source: Surveyor Chang, Penang 54
27 ISSUE 1: THE UNIVERSALITY OF THIS “MAGIC TABLE” ‐ ONE SIZE FITS ALL ? EX: IS IT FAIR : THE DIFFERENT RATIO BETWEEN MALL, OFFICE, RESIDENCE HERE? EX: SAME TABLE ACCURATELY CALCULATE S.C. FOR EACH OF THE 688 MALLS IN MALAYSIA?
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RMMALL = SUMALL x RM/SU MALL RMOFFI = SUOFFI x RM/SUOFFI RESIRESI = SURESI x RM/SURESI
ISSUE 2: TWO VARIABLES IN A FORMULA ARE FACTORS OF FACILITIES, ONE OF THEM IS REDUNDANT.
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28 ISSUE 3A: TWO VARIABLES IN SAME EQUATION
RMMALL = SUMALL x RM/SU MALL RMOFFI = SUOFFI x RM/SUOFFI RESIRESI = SURESI x RM/SURESI
ISSUE 3B: IN JMB PERIOD, SU RATE IS UNIFORMED
RMMALL = SUMALL x RM/SUUNIFORM RMOFFI = SUOFFI x RM/SUUNIFORM RESIRESI = SURESI x RM/SUUNIFORM ISSUE 3C: IN FUTURE, THIS MAY HAPPEN RMMALL = SUUNIFORM x RM/SUMALL RMOFFI = SUUNIFORM x RM/SUOFFI RESIRESI = SUUNIFORM x RM/SURESI
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MUHAMAD NAZRI BIN MUHAMAD V JMB MENARA RAJAWALI AND DENFLOW SDN BHD [2018] 9 CLJ 547
https://blog.burgielaw.com/2018/10/29/strata-management-case-updates-10-can-a-jmb-apply-different-rates-of-charges/
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